Hollard insurance fined $2m for handling of claim that destroyed home

Key points

• Insurer Hollard has been fined $2 million by the Federal Court for taking too long to process a home insurance claim. A house in regional Victoria became uninhabitable after a storm damaged its roof in October 2021.
• The corporate watchdog ASIC sued Hollard, alleging it breached its duty of utmost good faith. The court found delays in assessing damage, slow temporary accommodation and poor communication with the couple.
• Hollard has also been ordered to pay ASIC's legal costs, and the penalty goes to the Commonwealth of Australia.